LH Group Limited (01978) has issued a positive profit alert, indicating an expected profit attributable to shareholders of no more than HK$2.00 million for the financial year ended 31 December 2025. The company posted a loss attributable to shareholders of approximately HK$32.10 million in FY2024, underscoring a significant year-on-year turnaround.

Management attributes the expected return to profitability to three main factors:

1. Revenue Growth: Ongoing optimisation of the restaurant network and the roll-out of new dining concepts expanded the brand portfolio, underpinning sales throughout the review period.

2. Cost Efficiencies: Enhanced cost control and operational efficiencies reduced operating expenses while maintaining premium food and service standards.

3. Lower Impairment Charges: Improved performance at previously underperforming outlets led to a reduction in provisions for impairment of property, plant and equipment and right-of-use assets.

In response to market conditions, the group pursued several initiatives, including negotiating rental concessions, optimising supplier terms, and launching targeted promotional campaigns, while actively managing working capital to preserve liquidity.

The unaudited figures are based on the group’s preliminary management accounts and remain subject to audit and possible adjustments. LH Group plans to release its full FY2025 results on 26 March 2026.

Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.